Student Name – ID # XXXXXX
F
INAL
P
ROJECT
: P
ROJECT
D
S
ALARY
S
URVEY AFTER
MBA
I
NTRODUCTION
Students pursuing MBA degrees consider several factors when choosing a school. These factors can include
Cost of tuition, the likelihood of landing a job within six months
How much personal debt will be carried
What kind of salary to expect
Whether a private institution is worth the extra cost in exchange, presumably, for a higher salary.
O
BJECTIVE AND
M
ETHODOLOGY
A survey of the top 38 business schools was conducted, providing a data set that addresses the concerns listed
above. In addition, data related to additional costs and fees and region were included. This analysis will review
these concerns in an attempt to provide some guidance to the future MBA candidate. We will use statistical
analyses to evaluate the data in total by performing an exploratory data analysis on the data to identify patterns in
the data. If the findings suggest it, further analysis will be performed: multiple regression analysis, testing
dependent variables.
G
ENERAL
O
BSERVATIONS
– A
LL
S
CHOOLS
The following data were used in the estimates to determine if the total population information could give the
student any guidance. But first, the average indebtedness for M.I.T. was estimated using a simple regression on
the data. Estimating to a 95% confidence level by comparing M.I.T.’s cost to other private, eastern region schools,
we use the value $63,693 for the average indebtedness. (See Appendix 1)
Salary/Bonus
Annual Cost
Average
Indebtedness
Employment
Rate within 6
months
Mean
$
108,109
$
28,812
$
47,888
82.78%
Median
$
106,644
$
34,196
$
48,780
82.90%
Standard Deviation
$
15,067
$
13,048
$
24,352
6.69%
We first look at the Salary/Bonus distribution and compare it to Employment Rate and Annual Cost. We can say
that half of the expected salaries fall between $96,559 and $120,408 while the Employment Rate is between 78.3%
and 87.9% and the Annual cost is between $17,500 and $41,190 for the second and third quartiles. These charts
indicated a distribution that is left
‐
skewed, meaning there are some schools with significantly lower expected
values. But looking at Average Indebtedness, we see a range of the second and third quartiles between $22,434
and $69,458 with a right
‐
skewed distribution meaning that some students can expect considerably higher
indebtedness based on the chosen school.